Can Mobile Homes Be Used As Investment Properties?!

Can Mobile Homes Be Used As Investment Properties?

It seems like when you turn on any reality TV show that has to do with selling a home or remodeling a home, it always goes back to single-family homes, doesn’t it?

You know the type of show I’m referring to.

For the sake of not wanting to mention any specific show, it is safe to say that anyone who has ever channel-surfed over the past decade knows these shows.

One thing that I think is always interesting is that I have personally never seen a show explaining the benefits of investing in mobile homes as investment properties, as these shows always focus on single-family homes or sometimes apartment complexes.

Although apartment buildings and single-family home rentals certainly are the tried and true way to put one’s money if they are looking at purchasing real estate for investment purposes, I always ask myself: why doesn’t someone do a show about investing in mobile homes on leased land as possible rental properties?

My goal today is to give you a very basic understanding of mobile homes as investment vehicles when used as rental homes.

First, let’s go over the basics so we are all on the same page about what we are talking about here.

As we have discussed several times in the past, mobile homes on leased land are viewed and taxed as used vehicles in the state of Florida, which means you do not pay property taxes on the home. Most mobile homes in and around the Gulf Coast of Florida are older than 1976 models, making it difficult to obtain a mortgage or loan on them, as nearly all pre-owned homes of that age are sold and purchased in cash.

Lot rent is the monthly carrying cost most parks have, which covers the usage of land as well as basic utilities such as water, sewer, trash, and lawn care. Additionally, most mobile home parks in the area allow rentals as long as they are either seasonal or annual.

We are all aware of the need for affordable housing options as apartment wait lists continue to increase. Apartment rents rise accordingly as well. Buying a single-family home right now as an investment property is just plain bananas with how high the real estate market is swelling at the time of this video.

With all that understood, let’s peel back the onion a little bit here.

Most mobile homes only have lot rent as a monthly carrying cost. Most apartments do not offer to-your-door parking or even laundry services within the apartment unit for the base price of rent. Many people are moving to Florida right now looking for more affordable places to live than ever before. Mobile homes on leased land usually don’t carry debt, which brings down the owner’s liability when looking to rent the property.

With all of these things mentioned, do you see all the immediate needs that mobile home rentals meet right out of the gate?

Mobile homes on leased land are fantastic investment vehicles for those who are looking to invest but do not want to take on debt or get into a bidding war with other investors trying to purchase traditional real estate!

Furthermore, the fix-and-flip investment strategy usually works great with mobile homes. Let’s say you purchase a mobile home for $10,000 and fix it for $5,000. You can sell it for $25,000. A $10,000 quick profit is not a bad idea, especially if you are into a fixer-upper business strategy.

Mobile homes are inexpensive and in Florida, they are not taxed as real estate. People who can’t afford conventional homes always look into buying mobile homes. Not only are they easier to manage, but mobile homes in Sarasota, Florida are mostly located inside mobile home parks that are easily accessible. If you are selective during your buying process, your mobile home can appreciate in value and build your wealth over time.

Any investment that involves real estate has its pros and cons, and investing in a mobile home can be risky if you are not fully prepared and lack knowledge on how to do it properly. The reward, however, can be greater than your expectations if you do it right.

Assuming you are looking to purchase a mobile home to live in, there are a number of pros that may make this type of investment appealing.

For starters, mobile homes are generally much cheaper than traditional stick-built homes, so you will likely have a lower mortgage payment and/or be able to pay cash for your home outright.

Additionally, most mobile home parks offer a sense of community that can be appealing, especially for retirees or those looking for a more affordable lifestyle.

Finally, mobile homes tend to appreciate at a rate similar to traditional homes, so you can expect your investment to grow over time.

We look forward to answering any questions you have on mobile home investing and will be happy to answer additional questions in the coming weeks through our video series on this topic. Feel free to contact us directly with a specific question or drop a comment below.

The Mobile Home Dealer is a licensed mobile home broker in Sarasota, Florida and the surrounding areas. We provide professional buy and sell assistance to our clients. If you have any questions, please contact us by clicking this link. You may also visit our Facebook Page and send us a message.

This is Mark Kaiser with The Mobile Home Dealer, and we help mobile home buyers and sellers get to a better place in life.

Can Mobile Homes Be Used As Investment Properties?!